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Az Agency DisclosuresDual_agency_azMEDIUM

Agent David is acting as a dual agent. During negotiations, the seller asks David to help them counter the buyer's offer by suggesting specific terms that would be most advantageous to the seller. What should David do?

Correct Answer

C) Decline to provide advice that favors one party over the other

Correct: Dual agents cannot provide advice that favors one party over another as this violates their duty of equal representation. A is incorrect because providing advice favoring one party violates dual agency obligations. B is incorrect because the dual agent should not be strategically advising either party in negotiations. D is incorrect because providing strategic advice to either party, even both, creates conflicts in dual agency.

Answer Options
A
Provide the requested advice to maintain the seller relationship
B
Suggest terms that would benefit both parties equally
C
Decline to provide advice that favors one party over the other
D
Secretly advise both parties on their best negotiation strategies

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Related Topics & Key Terms

Key Terms:

dual_agencynegotiation_adviceequal_representation

Related Concepts

The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.

The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.

In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.

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